Rockhampton - sell or keep?

Hi Everyone,

First time poster here.

Two of my IP's are in Rockhampton. They are two 4br houses (one brand new, the other is a very tidy older house) on one block under one title. Both rented and returning well ($240wk vs $180k lend and $360wk vs $260k lend). Currently on the market as one lot, but have yet to sell.

A couple of people in the property game up there have suggested taking them off the market and holding them for the short/medium term due to (in their opinions) Rocky being positioned well to benefit from the mines and other projects starting up in Regional QLD.

I certainly know that it's a crappy selling area at the moment, but it's a good rental area.

Financially I don't need to sell them, but it would be nice to take the profits from my development and reinvent in other projects. That said, I am at less than 80% LVR, so I could suck up the mortgage insurance and access equity for my next property investment.

Have also been toying with the idea of splitting the titles and selling one or both (either traditionally or under vendor finance). The problem with this is that if I split the titles and still can't sell them, I have burned up money doing the split and will be left with higher holding costs.

If this were your situation, what would you do?

Any advice, opinions and knowledge much appreciated.
 
*snip*

Have also been toying with the idea of splitting the titles and selling one or both (either traditionally or under vendor finance). The problem with this is that if I split the titles and still can't sell them, I have burned up money doing the split and will be left with higher holding costs.

If this were your situation, what would you do?

Any advice, opinions and knowledge much appreciated.

Can't comment on the Rocky market, but in general, selling 2 lots like this together is targeting investors only, and probably in the 500-600k range?

By splitting to two titles, you expand your market by getting one into the sub-300k range and the other at about $350k? Many more looking in that range, both FHB, families and investors, I would think.
 
If this were your situation, what would you do?


You're right, Rocky prices are terrible at the moment (sales wise anyway). I'm actively looking/buying in the area and have seen a number of properties listed and sell below boom prices of 06/07.

If you can hold off selling for a while then I'd do that. 7% return isn't too bad compared to a lot of others out there! In the current market, it's going to be a tough sell!
 
Why are Rockhampton property prices struggling at present? ..... :confused:

I live inter state, but looked at the place a few years ago as a possible option, but decided to invest elsewhere.
 
AUD was/is high, beef exports low - meat works put off a large number of their staff; so less rentals needed.
Mining in Bowen Basin has slowed which looks to be continuing.

Just lack of sales lately has caused the market to drop rapidly. Has been like this for the past year and a half or so.

Add these to rising IR and all of these factors are coming together to really slow the market down.
 
Hi Everyone,

Forgot about this thread (sorry) :eek:

Thought I would give a quick update. After too much money spent on advertising :rolleyes: and getting three more crap offers, I decided to pull them off the market and keep 'em for the moment.

No shortage of bites, just offers lower than I was willing to take. As I said to the agent, if that was all I could get, I'll just keep them.

With so many properties on the market there, I couldnt justify spending the bucks on splitting the titles. At least selling as one lot, I had a point of difference (two houses with two income streams for less than the cost of buying/building separately), but if I split the titles, I am left with two separate houses with small yards and no point of difference over the shitloads of other places on the market.

At least it's a good renting market there, so the rental returns should stay strong...
 
Rockhampton

Hello,

I am looking for property with Vendor Finance so if anyone has property around Rockhampton please email me at [email protected] or ring me on 0416 606 669. I have great tenant ledgers and always infront.

Thanks,

Tess
 
AUD was/is high, beef exports low - meat works put off a large number of their staff; so less rentals needed.
Mining in Bowen Basin has slowed which looks to be continuing.

Just lack of sales lately has caused the market to drop rapidly. Has been like this for the past year and a half or so.

Add these to rising IR and all of these factors are coming together to really slow the market down.

- meatworks has nothing to do with sales in rocky......most workers are overseas imports, they are all still here....have been for years...

- market prices have not dropped rapidly, they have decreased sure but rapidly?? no way!

- there are few buyers around hence impatient sellers are meeting the market that is all...this is normal behaviour

- rocky is a resilient place with diversification of industry in many areas...........rail, beef, mining and general industry to name a few.

rocky sales are flat currently but no way has there been any panick selling...

FHB grant has helped many renters in the area buy in to the market hence the rental market currently maybe slow to fill.

Saying that the Rocky market is basically in freefall is just plain propaganda garbage.........
 
I see that you've made your decision, bbinvest.

I wonder if you have a clear strategy? I guess not or you wouldn't have asked the initial question. For example, my current strategy does not include selling properties. So, if it were me, I'd be very happy to hold the properties. They sound like good assets to own.

I believe it is best to have a strategy, an idea of where you're going and how you're going to get there.

regards,
 
I see that you've made your decision, bbinvest.

I wonder if you have a clear strategy? I guess not or you wouldn't have asked the initial question. For example, my current strategy does not include selling properties. So, if it were me, I'd be very happy to hold the properties. They sound like good assets to own.

I believe it is best to have a strategy, an idea of where you're going and how you're going to get there.

regards,

Hi Pete,

I did have a defined strategy - buy/build and hold. That said, the strategy is evolving now. I have partnered with someone to do a development and flip it. Also dipping my toe into wrapping.

There will always be a place for hold's in my portfolio, so I will just keep these two Rocky properties for the moment and re-evaluate a few years down the track.

I don't subscribe to the never sell thing because, for example, if I had an IP not performing well, I should not fave the flexability to be able to cash out and put that money to better use.
 
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